GSA's $218M Electric Power Contract with Potomac Electric Power Co. Faces Limited Competition
Contract Overview
Contract Amount: $21,804,120 ($21.8M)
Contractor: Potomac Electric Power CO
Awarding Agency: General Services Administration
Start Date: 2010-02-04
End Date: 2019-12-31
Contract Duration: 3,617 days
Daily Burn Rate: $6.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Utilities
Official Description: UTILITIES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407, UNITED STATES OF AMERICA
Plain-Language Summary
General Services Administration obligated $21.8 million to POTOMAC ELECTRIC POWER CO for work described as: UTILITIES Key points: 1. The contract for electric power distribution in Washington D.C. is valued at $218 million. 2. Limited competition is a significant factor, potentially impacting price discovery. 3. The firm fixed-price contract type offers cost certainty but may not capture savings from market fluctuations. 4. The Utilities sector is essential for government operations, making reliable power distribution critical.
Value Assessment
Rating: fair
Contract pricing is listed as 'NOT AVAILABLE FOR COMPETITION'. Without benchmark data or competitive bids, it's difficult to assess if the $218 million price is reasonable compared to similar contracts for electric power distribution in the region.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario. This lack of open bidding limits the government's ability to secure the best possible price through market forces.
Taxpayer Impact: The absence of robust competition may lead to taxpayers paying a premium for electric power distribution services.
Public Impact
Government facilities in Washington D.C. rely on this contract for essential electricity. The long duration (2010-2019) indicates a stable, long-term need for power. Potential price inefficiencies due to limited competition could impact overall federal budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of pricing data
- Long contract duration without clear re-competition
Positive Signals
- Firm fixed price provides cost certainty
- Essential service for government operations
Sector Analysis
The Utilities sector, specifically electric power distribution, is a fundamental component of government infrastructure. Spending in this area is typically stable, driven by operational needs rather than project-specific demands. Benchmarks are difficult without specific regional data.
Small Business Impact
The data provided does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The General Services Administration (GSA), through its Public Buildings Service, managed this contract. Oversight would focus on ensuring reliable service delivery and adherence to contract terms, though the limited competition aspect warrants scrutiny.
Related Government Programs
- Electric Power Distribution
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Absence of clear justification for limited competition
- Difficulty in assessing value for money
- Long contract duration without evidence of re-competition
Tags
electric-power-distribution, general-services-administration, dc, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $21.8 million to POTOMAC ELECTRIC POWER CO. UTILITIES
Who is the contractor on this award?
The obligated recipient is POTOMAC ELECTRIC POWER CO.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2010-02-04. End: 2019-12-31.
What was the rationale for limiting competition on this substantial electric power contract?
The rationale for limiting competition is not provided in the data. Typically, such limitations might stem from unique infrastructure requirements, existing utility service territories, or specific regulatory environments. However, without explicit justification, it raises questions about whether alternative procurement strategies could have yielded better value for the government and taxpayers.
How does the $218 million contract value compare to market rates for similar services in the D.C. area?
Direct comparison is challenging due to the 'NOT AVAILABLE FOR COMPETITION' status and lack of specific service details. However, given the significant value and the essential nature of electric power, any deviation from competitive market rates, even if not explicitly calculable here, represents a potential financial risk.
What is the potential long-term financial impact of awarding such large contracts with limited competition?
Awarding large contracts with limited competition can lead to sustained higher costs for taxpayers over time. Without the pressure of competitive bidding, contractors may have less incentive to offer the most cost-effective solutions. This can result in inefficient use of federal funds that could otherwise be allocated to other critical government programs or services.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pepco Holdings LLC (UEI: 105895010)
Address: 701 9TH ST NW, WASHINGTON, DC, 20068
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,804,120
Exercised Options: $21,804,120
Current Obligation: $21,804,120
Timeline
Start Date: 2010-02-04
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2015-06-25
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